Sand Springs, Okla. – September 25, 2026 -- Webco Industries, Inc. (OTC: WEBC) reported fiscal 2026 net income of $18.3 million, or $26.50 per diluted share, nearly double the $9.3 million, or $12.30 per diluted share, earned in fiscal 2025.
Annual net sales climb 14.8 percent to $670.9 million on stronger margins
Full-year net sales reached $670.9 million, up from $584.7 million in fiscal 2025. Gross profit for the year rose to $94.0 million, or 14.0 percent of net sales, compared with $66.8 million, or 11.4 percent, a year earlier. Income from operations increased to $28.0 million after $20.0 million in depreciation, versus $16.6 million after $19.0 million in depreciation in fiscal 2025.
Fourth-quarter profit falls despite 19.9 percent sales growth
Q4 net income declined to $5.0 million, or $7.35 per diluted share, from $6.5 million, or $9.18 per diluted share, in the prior-year quarter, even as net sales grew to $189.7 million from $158.2 million. Gross profit for the quarter rose to $27.7 million, or 14.6 percent of net sales, from $22.0 million, or 13.9 percent, a year earlier, but income from operations fell to $7.7 million after $5.1 million in depreciation, down from $9.0 million after $4.8 million in depreciation.
SG&A expenses surge on incentive pay and inflation
Selling, general and administrative expenses jumped to $66.0 million for fiscal 2026 from $50.2 million in fiscal 2025, with the fourth quarter alone rising to $20.0 million from $12.9 million. The company attributed the increase to company-wide incentive compensation, variable pay programs tied to higher profitability, and wage inflation.
Interest expense rises to $5.9 million on higher average debt balances
Full-year interest expense increased to $5.9 million from $5.3 million, while fourth-quarter interest expense edged up to $1.5 million from $1.4 million, reflecting higher average borrowings.
Company extends revolving credit facility maturity to February 2031
Capital expenditures totaled $15.4 million for fiscal 2026, including $1.8 million in the fourth quarter, focused on plant equipment updates. At July 31, 2026, Webco held $9.1 million in cash and short-term investments plus $112.9 million available under its $220 million senior revolving credit facility, which had $89.3 million drawn. In February 2026, the company extended the facility's maturity to February 2031, though accounting rules require the asset-based revolver to be classified as a current liability regardless of its long-dated maturity.
Board refreshes stock buyback program with new $6.0 million limit
In March 2026, Webco's Board of Directors refreshed its stock repurchase program, raising the limit to $6.0 million and extending its expiration to July 31, 2029. The company repurchased 11,900 shares in the fourth quarter and 33,800 shares over the full fiscal year, leaving approximately $1.6 million of purchase authority as of July 31, 2026.